Why you should not buy Citigroup now. (NYSE:C)

1) US Treasury department is planning to sell their stake in Citigroup in 2010. Would you buy when such a big sale is taking place? I won't. At least, I will hold my horses with alarm bells ringing.
2) Technical PictureThe upside of this trade is not worth taking a risk. Safe price targets are between $4.70 - $5 (fibs 161%). Stops should be below the 10SMA ($3.80 - $4.00).
Clearly your Risk-Reward ratio is <2. I'm not comfortable with this. 3) Chasing the missed channel breakout 4) Temasek Holdings have previously sold their stake in Citigroup, leaving a small speculative portion. I hear Temasek Holdings. Short EURO instead.


Try Roomorama for your acoomodation solutions in Major Cities like New York, Boston, Washington, Miami, San Franciso, Los Angeles, Toronto, Montreal, Vancouver, Paris, Prague, Rome, Berlin, Barcelona, Amsterdam, Milan, Venice, Vienna and Sydney.

Trade Signal: usdcad (7 Mar 10)

Currency Pair: USDCAD
Action: Buy / Long
Duration: Order to last till end of week of 7 Mar 10; trade to last max 2.5wks
Risk-Reward Ratio of Trade: x2
Justifications:

Weekly Chart
Clear Range Bound Trading since Sep-Oct period



Daily Charts
1. Reinforcement of Range Bound (trade from support to resistance and vice-versa)
2. Rebound Count off Support is #3
3. Orders on daily candlesticks show little orders below current support i.e. downwards momentum dying
4. Trade risk-rewards capable of hitting the next resistance level
5. Stochastics and RSI showing textbook reversal